Engineering Board Exam Reviewer · Compound Interest · easy

Find the compound interest earned on P20,000 invested at 6% compounded quarterly for 2 years.

  1. P2,529.85
  2. P2,400
  3. P22,529.85
  4. P2,472

Answer

A. P2,529.85

Solution

i=0.06/4=0.015 and n=8. Amount =20,000(1.015)8=P22,529.85. Interest =22,529.85-20,000=P2,529.85.

More Compound Interest questions

  1. Find the compound amount of P10,000 invested at 6% compounded annually for 5 years.
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  3. Find the compound amount of P15,000 at 8% compounded semi-annually for 4 years.
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  5. Find the present value that will amount to P50,000 in 6 years at 7% compounded annually.
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  7. Find the effective interest rate equivalent to 10% compounded annually.
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